XVI. Antarctic Speculation

Speculation Spillovers Speculation Spillovers

This paper demonstrates that investor irrationality can be contagious across markets. Supplementing existing studies on resale option theory, we illustrate that warrant speculation could spill over to the underlying stock market. Our findings indicate that high turnover of underlying stocks is associated with previous day’s high unexpected turnover of warrants, or previous day’s larger price de...

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-Monetary policy operates in a different environment than it did a decade ago. Financial market innovations have eroded the distinctions among monetary assets, making the definition of money increasingly arbitrary. Deregulation of interest rates and banking activity is changing the behavior of the monetary aggregates, as banks pay interest on monetary assets and nonbanks offer monetary-like ass...

XVI. Miscellaneous

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The stock market crash of 1987 sent shock waves through the world's financial markets. Stock exchanges in New York, Chicago, London, Tokyo, Frankfurt, and a host of other cities suffered major declines. In response, credit markets, commodity markets, and foreign exchange markets registered sharp swings. Not since the Great Depression had the world seen such turmoil in financial markets. But, dr...

Xvi. Neurophysiology

At the time of the Quarterly Progress Report of April 15, 1958, I thought that no circuit could preserve error-free action if it were composed of 3 neurons, each receiving only 2 inputs. To correct this, let me replace the jot in any Venn symbol (1) by 1 if the jot is always present, by 0 if it is always absent, and by p if it is present with a probability p due to a shift of the threshold 0 of...